Online insurance I After seeing countless commercials claiming one can get cheaper car insurance from an online
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Online insurance I After seeing countless commercials claiming one can get cheaper car insurance from an online company, a local insurance agent was concerned that he might lose some customers. To investigate, he randomly selected profiles (type of car, coverage, driving record, etc.) for 10 of his clients and checked online price quotes for their policies. The comparisons are shown in the table below. His statistical software produced the following summaries (where Price Diff = Local - Online):
SD (Local - Online) = √ (SD2(Local) + SD2(Online).)
But when he checked, he found that
√ ((229.28l) 2 + (256.267)2) = 343.864, not 175.663
as given by the software. Tell him where his mistake is.
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Related Book For
Stats Data And Models
ISBN: 662
4th Edition
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
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